FRANKLIN, Tenn., March 24 /PRNewswire/ -- Spheris, a leading global outsource provider of clinical documentation technology and services, today announced results for the three and twelve months ended December 31, 2008.
Financial Highlights--Fourth Quarter of 2008
Net revenues for the fourth quarter of 2008 were $41.8 million compared with $48.6 million for the fourth quarter of 2007. The decrease in net revenues was due to the impact of net lost business and lower average customer contract pricing.
Operating income was $4.7 million, or 11.2% of net revenues, for the fourth quarter of 2008 compared with $1.2 million, or 2.5% of net revenues, for the fourth quarter of 2007. The improvement in operating income was driven by increased utilization of the global production workforce and speech recognition technologies, in addition to lower marketing, selling and general and administrative expenses that resulted from the Company's cost-containment efforts. These improvements more than offset the decrease in net revenues noted above. Additionally, the improvement in operating income was aided by lower amortization expense as certain capitalized customer lists were fully amortized.
The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, other expense or income, and restructuring charges. Adjusted EBITDA for the fourth quarter of 2008 was $9.1 million, or 21.8% of net revenues, compared with $7.3 million, or 15.0% of net revenues, in the prior-year period. The improvement in Adjusted EBITDA was due primarily to the operational cost savings described above.
Adjusted EBITDA is a financial measure not computed in accordance with United States generally accepted accounting principles, or GAAP. Please refer to the "Supplemental Financial Information" and related note contained in this press release for further discussion and recon
Copyright©2009 PR Newswire.
All rights reserved